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Houston Business Journal - September 19,
2005
Nexus Health Systems has
added two new executives in key positions that had been vacant
for more than 18 months.
Edward A. Downs has been named chief operating
officer, while Rob Tyler has been brought on as chief financial
officer of Houston-based Nexus. Both executives previously worked
for Birmingham, Ala.-based
HealthSouth Corp.
Nexus was founded in 1992 to create a
specialized health care environment in which patients with
catastrophic neurological injuries could receive treatment and
rehabilitation specific to their needs.
The company currently operates four medical
specialty hospitals and a residential rehabilitation campus.
Houston Business Journal - June 17,
2005
by
Greg Barr Special to Houston Business Journal
Whether working as the director of a brain
injury program at a Houston hospital or as a neuropsychology
expert hired by law firms to determine long-term medical
needs of accident victims, Charlene Madison-Cassidy saw
first-hand how traumatic injuries could turn a person's life
upside down.
She also saw a business opportunity.
"The questions kept coming up from
patients who were not so focused on their needs right now
but wanting to know what would happen five or 10 years down
the road because they knew the disabilities weren't going to
go away," says Madison-Cassidy. "Someone with brain and
spinal cord injuries has to deal with that the rest of their
life, and the families have to deal with it financially."
As a result, Madison-Cassidy founded
LifeCare Planning Inc. in 1989 to help people with
catastrophic injuries, long-term disabilities or chronic
illnesses -- and their families -- coordinate the health
care and funding issues involved.
While the concept may have been ahead of
its time when LifeCare was created, the firm is now in the
midst of a major growth spurt. That effort includes adding
staff and expanding office space while being courted by
national insurance companies which, as Madison-Cassidy once
did, sense that life care planning is a hot commodity.
Madison-Cassidy points out that life care
planning simply didn't exist 25 years ago, a time when life
expectancies were shorter.
In the 1980s, the funding issues related
to long-term care weren't as important as they are today,
she says, so LifeCare was developed in 1989 more from the
litigation side.
"But what has evolved over the years is
this new discipline that's much more precise and thorough,"
Madison-Cassidy says.
The building block on which LifeCare is
based is its "Physician-Led Team Specific Care Planning
Method." Rather than using an administrator or a rehab nurse
to coordinate a patient's long-term needs, LifeCare puts a
medical doctor at the head of the team.
"The physician is in the best position to
bridge that gulf and look at each case from a clinical
perspective and not only project what will be needed to care
for someone 10 years from now, but monitor those needs
annually," Madison-Cassidy says. "As the needs change, the
costs can go up or down."
LifeCare has three physicians on staff --
and seeks to hire two more this year -- who coordinate care
in each case with occupational, physical and speech
therapists, social workers, nurses, financial planners,
educational and vocational trainers and other professionals.
Madison-Cassidy says it is unrealistic for
one worker to address all these needs, so LifeCare uses the
traditional rehab team approach, but with a doctor as team
leader.
John Cassidy, who is also president and
CEO of Nexus Health Systems, is LifeCare's medical director,
and Madison-Cassidy's husband. Relying on his more than 25
years' experience in brain injury cases, Cassidy acts as a
coach and consults with the LifeCare physician team leaders.
Nexus Health provides medical and
rehabilitative care following acute injury or illness.
Cassidy suggests the LifeCare model has
been successful because it coordinates medical and financial
needs simultaneously, while remaining cost-effective.
"When people plan to fund a child through
college, they set money aside but have no perspective on
realistic costs when the time actually comes," he says.
"Families are terrified they might have to commit their
entire savings to long-term care, but we help them figure
out how to spread those resources around."
Soon after setting up LifeCare,
Madison-Cassidy realized she may have been spreading her own
resources too thin. She also realized that she had some
serious decisions to make.
"Most health-care provider types have an
abysmal lack of training when it comes to management,"
Madison-Cassidy says. "I realized that if I was going to
accomplish my goals, I would have to treat it as a business
and get the help and expertise I needed instead of trying to
do everything myself."
In the mid-1990s, Madison-Cassidy made the
pivotal decision to leave the clinical work she had enjoyed
for years, and to merge her private neuropsychology practice
into LifeCare.
"I knew I couldn't do everything
effectively, but it was very difficult to give up my
identity as a hands-on care provider," she says.
The business of care
LifeCare moved several times during the
1990s, as Madison-Cassidy slowly began to add staff. Still,
it was not until after 2001 that the business, which now
employs 12 people, began to grow substantially.
Madison-Cassidy said her most rewarding
decision to date was hiring Andrew Pikoff in March 2003.
Pikoff, a Houston litigation attorney at the time, had used
LifeCare to help determine life care planning costs for some
of his clients. One day over lunch, Madison-Cassidy
suggested he should look into a new career to take advantage
of his business acumen. He called her back and said he found
his niche, and it was at her company.
"Charlene works more on the people side,
and she's dedicated to the concept of life care
planning and helping people who have nowhere else to
turn," says Pikoff, who sold his law firm to a partner
before coming on board with LifeCare.
After his arrival, Pikoff helped
Madison-Cassidy develop banking relationships; come up
with a corporate structure to support growth; develop
branding, logos and a Web site; and create a database
for marketing letters to lawyers and doctors.
"Educating people that the concept
and the company existed was the biggest challenge," he
says.
Pikoff also brought in a financial
administrator who still works part-time at LifeCare. In
April 2005, about two years after he joined LifeCare,
Pikoff took his expertise into a new arena as executive
director of Decorative Center Houston.
"He really helped me finally get the
business act together," says Madison-Cassidy. "When it
got to the point where I needed to hire more people, I
realize it would have made things even more confusing
because I didn't have the administrative structure in
place to handle it."
With Pikoff's guidance, LifeCare went
from revenue of $650,000 in 2002 to $1.1 million in
2004, with a projection of $1.3 million this year. At
the same time, the company increased office space
earlier this year to 2,400 square feet, on a floor it
shares with Nexus. Although there is no financial
investment between the companies, they have formed a
strategic alliance to share expertise and resources.
A grand plan
With more growth in sight,
Madison-Cassidy is mulling over new areas of business
in addition to the company's life care medical and
financial planning for families and legal consultation
work.
If ongoing discussions with major
insurance companies pan out to develop products that
can be sold to families to help with long-term
financial commitments for life-long disability cases,
LifeCare would once again be on the cutting edge of a
new industry niche.
Norm Zober, a Bethesda, Md., national
health care management consultant who is also on the
Nexus board, has offered advice to Madison-Cassidy
along the way.
"She's very articulate and creative,
and basically started this company from nothing," said
Zober, who agrees that the possible alignment with
major insurance companies cannot be understated in
terms of potential. "Charlene spotted this need to help
families figure out how they can help the (injured)
person live the best life they can, and what makes it
unique is having physicians actively involved in
helping determine the dollar amount of commitment
needed over time."
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